Report | Health

Capping the health insurance tax exclusion—The consequences vary greatly across states and regions

Briefing Paper #237

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Under current law, employer contributions to health insurance premiums are excluded, without limit, from workers’ taxable income. Proposals to end or cap this tax exclusion are emerging in the discussions of how to pay for health care reform. This EPI Briefing Paper looks at how cross-state variations in health costs change the likelihood of being directly affected by a tax cap.


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